Tiidal Gaming (TIDL.CN) is a media and technology platform enabling next generation engagement in esports and gaming. They are positioned at the intersection of gaming, media, and betting and enable their partners to create positive, engaging, and immersive fan and consumer experiences through their industry-leading media and technology offerings. With deep industry roots and expertise, Tiidal is focused on the next generation of fan and consumer and building the future of game-based entertainment.
The technology business is under the brand Sportsflare. Sportsflare’s product suite delivers robust odds feed and advanced technology solutions for a variety of partners, including sportsbooks, online betting, media, and video gaming companies. Using applied deep learning and artificial intelligence research, Sportsflare has established a state-of-the-art technology platform for its products that comprises an AI esports engine that accurately produces predictions for hundreds of in-game outcomes in real-time (micromarkets), a data platform that conducts the aggregation and analysis of various data sources, and a trading platform that not only updates in-play and pre-match prices based on betting activity but also offers automated bet settlements.
One innovative offering is the “Bet-On-Yourself” offering which allows players to compete against the environment without an opponent. Back in my early gaming days, we would call this battling or competing against the computer player.
The media and entertainment side is under the brand Lazarus Esports. Lazarus Esports is Canada’s first established esports team and #1 ranked by historical winnings in Canada. Lazarus Esports is focused on developing the global gaming market and building an authentic community while supporting professional gamers and content creators at the highest level for greater success to be a bridge to the next generation of fans and consumers.
Recent news was a big one. Tiidal announced Tom Hearne as CEO and member of the board of directors. His past role was CFO of theScore, which was acquired by Penn National Gaming for $2 Billion. Mr. Hearne was also the CFO of OpenText (a $16 Billion market cap), and a London Stock Exchange listed company called Sportech.
Mr. Hearne joins Tiidal at a pivotal time as the company increases its focus on rapid growth and the commercialization of its Sportsflare products.
“I am excited to be joining Tiidal and look forward to working closely with Charlie, Max, and the Board to deliver on core objectives and maximize the potential of the Company’s media and technology opportunities,” remarked Tom Hearne, CEO and Director of Tiidal Gaming. “There is a generational opportunity at the intersection of the major secular trends of gaming, media, and betting to build engaging experiences for the next generation of fan and consumer. I believe that Tiidal is uniquely positioned to be a leader in this revolution through its proprietary technology, significant viewership and brand following, and a Board and advisors of industry leaders across technology, media and sports and entertainment.”
I think this is positive news. We all know management is important. So is experience. You want to be with management or people who have had a track record of success. TheScore made headlines in the esports world with the acquisition and the stock price. Tiidal now will have someone who was part of that success. Great news, and I am looking forward to seeing the company implement a growth strategy.
With this news and the company in the early stages of implementing a growth strategy under a new CEO, is it time to jump in the stock?
There are a lot of interesting things to talk about here. First off, let’s take it back to the beginning. Tiidal Gaming began trading on November 17th 2021. An initial drop which isn’t too surprising on an IPO. Investors that got in the company earlier one tend to take some profits off the bat. The stock continuously dropped until it printed new record lows on December 1st 2021. But from there, we turned around. A turnaround of 119% from record lows to record highs in just over a month.
Notice the period of light trading on the charts, apparent with no candle bodies. The stock did not do much during the run up to Christmas and during the Holiday period. There was low liquidity, and not many shares were traded. This all changed on January 4th 2022 with the announcement of Steve Hearne joining as the CEO. A great start to the year. Since that news to record highs, the stock has gained 40% in one trading week, and has seen a considerably larger amount of volume.
My readers know my take on newly listed stocks. Personally, I like to wait for a few weeks and months of price action to create support and resistance levels. For a stock with not much price action, record lows, IPO opening price, and record highs are levels we can work with in a short amount of trading time. Breakouts are always great. Especially when the stock breaks out from IPO highs.
As you can see from my chart, this is the case for Tiidal. We have confirmed a break and close above the IPO price and formed new record highs at $0.35. Very bullish price action right now. Impressive, given what is happening on the larger market indices.
January 6th 2022, is when Tiidal officially closed and confirmed a breakout. Two criteria were met: we got the candle close confirmation, but secondly, it happened with large volume. The breakout day saw the most shares traded on record (for now) on Tiidal gaming. 1,004,877 shares were traded that day. The following day was a red candle, but we call this the ‘retest’ portion of the breakout.
A retest is very important for the breakout, as it either confirms the breakout continues, or confirms a false breakout/fake out. Psychologically, the thinking behind it is a retest allows bulls to jump in who missed the breakout trade. Rather than chase the price higher on FOMO, patient and experienced traders/investors jump in on the retest. We have a large red candle, but the positive thing is price closed above the support at $0.30. We have evidence that buyers are jumping in and defending. A large wick candle indicates buyers jumping in to drag the price back above $0.30 and close above $0.30. The retest, so far, is successful.
This now sets up today as a very important day for Tiidal. If the retest is successful, we should expect to see a nice green candle signifying more buyers piling in. Price hangs on the support ledge, and if it holds, we should expect to see a breakout above recent highs of $0.35 leading to new record highs. Watch for price action then. We will see a nice jump in volume on that break.
